Business

City Towers sold above reserve price for $401.9 million

City Towers, a freehold development in prime District 10, has been sold for $401.9 million.

The sale price - which is more than 13 per cent above the owners' reserve price - works out to a land rate of about $1,847 per square foot per plot ratio (psf ppr), after factoring in a development charge of $3.5 million.

The land rate for the 17-storey City Towers is a tad higher than the $1,840 psf ppr achieved for the collective sale of nearby Crystal Tower last November.

The City Towers collective sale tender, which was launched on Jan 4 and closed at 3pm yesterday, attracted a total of seven competitive bids, said marketing agent Colliers International.

"Despite several competing collective sale tenders in District 10, City Towers still attracted strong interest from developers, owing to its prime location near renowned schools, a wide range of amenities and the Newton and Stevens MRT stations," said Colliers International managing director Tang Wei Leng.

City Towers, which is in Bukit Timah Road, has a land area of 104,531 sq ft, with a proposed total gross floor area of 219,516 sq ft.

Under the Urban Redevelopment Authority's Master Plan 2014, it is zoned residential and has a plot ratio of 2.1.

The site can potentially be redeveloped to a 24-storey residential block offering about 190 new units - at an average size of 1,098 sq ft.

City Towers comprises 77 units of apartments and maisonettes, a penthouse unit and a shop unit.

Depending on the size of their property, each residential owner stands to receive $2.78 million to $11.5 million from the successful sale.

"Amid price recovery in the high-end residential segment, the developer can adjust the size of the units offered to ensure that homes remain relatively affordable, with an average selling price of about $3million - a very competitive price point for an apartment in prime District 10," said Ms Tang. - THE STRAITS TIMES

Property